ISSN: 1305-5577 DOI: 10.17233/sosyoekonomi.2021.03.09 Sosyoekonomi RESEARCH Date Submitted: 13.05.2020 ARTICLE Date Revised: 30.05.2021 2021, Vol. 29(49), 181-198 Date Accepted: 02.06.2021 The Effect of International Remittances on Financial Development: Turkish Experience in the Period of 1974-2019 Ayfer ÖZYILMAZ (https://orcid.org/0000-0001-9201-2508), Department of Foreign Trade, Kocaeli University, Turkey; e-mail:
[email protected] Metin TOPRAK (https://orcid.org/0000-0001-9217-6318), Department of Economics, İstanbul Sabahattin Zaim University, Turkey; e-mail:
[email protected] Yüksel BAYRAKTAR (https://orcid.org/0000-0002-3499-4571), Department of Economics, İstanbul University, Turkey; e-mail:
[email protected] Uluslararası İşçi Dövizlerinin Finansal Gelişme Üzerindeki Etkisi: 1974-2019 Dönemi Türkiye Deneyimi Abstract In this study, workers’ remittances on financial development in Turkey are analysed using the Autoregressive Distributed Lag Bound (ARDL) method from 1974 to 2019. In the analysis, the dependent variable, which is the domestic credit to the private sector by banks (percent of GDP), is used as an indicator for financial development. In addition to international workers’ remittances, other independent variables include GDP per capita, interest rate, and inflation. International remittances are found to affect financial development positively; however, the effect is slight. In addition, growth affects financial development positively, inflation negatively, and the impact of interest is statistically insignificant. Keywords : Workers’ Remittances, Financial System, Financial Development, ARDL. JEL Classification Codes : F24, G29, C22. Öz Bu çalışmada 1974-2019 dönemi için Türkiye'de işçi dövizlerinin finansal gelişme üzerindeki etkisi ARDL yöntemi ile ele alınmıştır.